(TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed year.

Sales $950

Purchases of raw materials $225

Direct labor $250

Manufacturing overhead $295

Administrative expenses $150

Selling expenses $140

Raw materials inventory, beginning $30

Raw materials inventory, ending $45

Work-in-process inventory, beginning $20

Work-in-process inventory, ending $55

Finished goods inventory, beginning $100

Finished goods inventory, ending $135

Please review a Schedule of Cost of Goods Manufactured statement below.

Schedule of Cost of Goods Manufactured for the Larop Corporation

Diret materals:

Raw materials inventory, beginning$30

Add: Purchases of raw material 225

Raw material available for use 255

Deduct: Raw materials inventory, ending45

Raw materials used in production210

Direct labor 250

Manufacturing overhead 295

Total manufacturing costs 755

Add: Work-in-process inventory, beginning20

775

Deduct: Work-in-process inventory, Ending55

Cost of goods manufactured $720

Rm used = DM = Beginning RM + RM Purchases - Ending RM = 30 + 225 -45 = 210

Total Mfg Cost = DM + DL + MOH = 210 + 250 +295 = 755

COGM = Beginning WIP + Total Mfg Cost - Ending WIP = 20 + 755 - 55 = 720